Lecture 5 marketing

Chapter 7: Marketing research

Market research: Consists a set of techniques and principles for systematically, collecting, recording,
analysing and interpreting data that can aid decision makers involved in marketing goods, services or
ideas

The market research process:

 Define research problem and objectives

 Design the research plan
 Project objectives
 Collect data
 Analyze data and develop insights
 Present, action plan

Step 1: Define the research problem and objectives:

o Helps to know what you are looking for

o Objectives guide the entire process and helps to keep the scope of the project
o What information is needed to answer specific research questions?
 Data is used to be analyzed for market insight to convert to actions
o How should that information be obtained
 By contacting others organizations which have conducted the same analysis

Step 2: Design the research plan:

 Project objectives drive the type of data needed

 Identify -> type of data needed
o Secondary or primary
 Determine -> Type of research necessary to collect the data
o Exploratory and/or conclusive (descriptive or casual)
 Spells out:
o The specific research approaches (observation, survey and experiment)
o Contact methods (mail, telephone, in person and online)
o Sampling plans (sampling unit, sample size, and sampling procedure
o Instruments to gather data (questionnaire)

Step 3: Collect Data

 Secondary data:
o Pieces of information that have been collected prior to the start of the focal project
 Primary data:
 o Data collect to address specific research needs

Step 4: Analyze Data and Develop insights:

 Converting data into information to describe, explain, predict and/or evaluate a particular
situation

Step 5: Present Action Plan

 Prepare the results:

o Executive summary
o Body of the report (objectives, methodology, findings)
o Conclusions/ recommendations
o Supplemental tables/ appendices
 Present the results:
o Short and to the point
o Interesting and appropriate to style of audience
o No technical jargon
o Recommendations

Types of data:

Secondary data Primary data

Qualitative Quantitative

Descriptive Casual

Types of Data:

Secondary data

 Can be:
o Can be free or very inexpensive to obtain
o Saves time in collecting data (readily available)
 May not be
o Relevant/ specific
o Accurate
o Current/ timely
o Impartial/ contain bias

Primary data:

 Can be:
o Tailored to fit the research questions
o Offers behavioural insights
 May not be :
o Usually more costly
 o Takes longer to collect
o Requires more sophisticated research skills to collect unbiased reliable, and valid data

Secondary Data:

 Types of secondary data sources:

o External sources:
 Ex: census data, trade, journals, books, articles, reports
 Can also be purchases from specialized research firms
 Syndicated data; data sold by marketing companies, companies that
sold many other marketing decisions (ex: scanner data, panel data)
o Internal sources:
 From the company/ firm itself
 Invoices, customer lists, other reports created by the firm
 Firms use data mining techniques to decipher larger amounts of data

Primary Data:

 Qualitative research: Is exploratory in nature and it is more informal than quantitative research
methods
o Examines purchase and consumption behaviour through personal or video camera
observance
 Ethnography- Study people in their daily life setting
o In depth interview
 Trained researchers ask questions, listen to record answers
 They then pose additional questions to clarify
o Focus groups:
 Small group of people come together for an in-depth discussion
 Guided by a trained moderator
o Social media
 Social media sites are a great source of data
 Companies scan the web for blogs, posting, tweets or Facebook posts to gather
up-to-date news about the company, products, and competitors
 Companies build their own communities and encourage the online conversation
o Refer to slide 7-18 for chart
 Quantitative Research: Provides the information needed to confirm those insights that a firm
may have (conclusive) It is suitable to test the prediction or hypothesis
o Survey research
 Is the most widely used method and is best for descriptive information-
knowledge, attitudes, preferences and buying behaviour
 Marketing research relies heavily on questionnaires, which can be unstructured
(open-ended questions) or structured (close-ended questions)
o Experiments:
 Experimental research is best for gathering casual information- cause and effect
relationships
  A type of research that systematically manipulates one or more variables to
determine which variables have a casual effect on another variable
o Scanner and panel:
 Scanner research uses data obtained from scanner readings of UPC codes at
checkout counters
 Questions: what would happen to sales if it reduced its price by 10
percent?
 Did sales increase, decrease or stay the same
 Panel research
 Involves collecting information from a group of consumers (the panel)
over time (ex: survey, record of purchases)
 Refer to slide 7-14 for diagram

Dove example:

 Born in 1957 as a beauty soap. It Is sold in more then 80 countries with more than $5 billion
in sales revenues
 Dove is a powerful brand name. Consumers trust it and see it as honest but also as boring
 Unilever needed to reposition the and to make dove a beauty brand

Test questions:

Which is the following statement is true of social risk:

 It is the risk that involves the fear that consumers suffer when they worry others might not
regard their purchase

Tom finds many cars, but they are expensive, so he chooses the cheap one

 A no compensatory decision rule

Insights on how people feel personally about a product or service on an individual level

 In-depth reviews